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A bank today makes $100 in 3-year loans with an 18% fixed annual interest rate. It funds the loans today with $100 in 1 -year

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A bank today makes $100 in 3-year loans with an 18% fixed annual interest rate. It funds the loans today with $100 in 1 -year CDs that currently have an 8% annual interest rate. What is the bank's expected net interest income in the second year if interest rates rise by 1% tomorrow and remain at that level for the next two years? A) $8 B) $18 C) $26 D) $9 E) $10

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